Category Archives: Housing

6 Pointers to Help Seniors Live at Home Longer

Seniors on culinary workshop 

The vast majority of older Americans want to remain in their homes as they grow older, also known as aging in place. ABA is offering the following tips for older Americans considering this option:

Take a hard look at your finances.

Arrange a meeting with a trusted family member or friend and a banker. It’s critical to understand your financial resources, how long they’ll last and what housing options are the most cost effective for you. Be sure to consider all costs associated with aging in place, including:

  • Home modifications, home insurance and property taxes
  • Transportation to medical appointments, shopping and other errands
  • In home caregiver for house upkeep and medical purposes

Consider a reverse mortgage.

Though not for everyone, a reverse mortgage loan can provide monthly cash payments based on your home’s equity.

  • Shop around. Be sure to check with multiple lenders. You can use sites like http://www.reversemortage.org, sponsored by the National Reverse Mortgage Lenders Association, to find lenders in your area.
  • Make sure to read all loan documents carefully. There are a number of actions that could cause the loan to become due. For more information on reverse mortgages, visit aba.com/consumers.

Assess your home and determine what modifications are necessary.

While staying in your home is preferable for many, there are often design changes that must be made to ensure it’s also safe and comfortable.

  • Make sure there is at least one step-free entrance to your home.
  • Update lighting inside and outside of the house so that all walkways and stairs are well lit.
  • Clear pathways throughout house and firmly secure all carpets to the floor to prevent tripping.
  • If a bedroom and bathroom does not or cannot exist on the first floor, consider installing an elevator or chairlift. At a minimum, make sure you have handrails on both sides of your stairs.
  • Install grab bars in the bathtub, shower, or near the toilet.

Make security a priority.

Older Americans are often targets for scams and other criminal behavior. Be cautious about who you allow in your home and disclose sensitive information to.

  • Install up to date and easy to use locks. Make sure your front door has a peep hole or a security monitor so you can see who is outside.
  • Consult someone you trust when hiring a contractor, financial advisor, etc. Look into community resources. If mobility is limited, look in to services offered in your area. Many communities have established non-profit programs that offer transportation and food delivery to assist older Americans at a reasonable cost.

Be prepared for possible emergencies.

  • Keep a list of all emergency contacts on your refrigerator or by a phone.
  • Consider a Personal Emergency Response System. Transmitters can be worn as a bracelet or around your neck and require the simple push of a button to send a signal to a call center.
  • Have your address number visible from the street so emergency responders can easily identify your home.

Reevaluate every six months to make sure all needs are being met.

As you age, your needs inevitably change. Take time twice a year, or as needed, to sit down with your trusted family or friend and make sure your current living situation is still the right one.​

Resource Information Provided by the American Bankers Association.
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6 Tips to Save for a Down Payment

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When considering buying a home, the down payment you put upfront plays a major role in your future housing expenses. According to the Consumer Financial Protection Bureau, the amount you save can greatly influence your interest rate, monthly housing payment and also your need for mortgage insurance. As you prepare for the home buying process, we are highlighting six tips to help you cut the extra costs and save a substantial amount for your down payment.

Typically, lenders require anywhere between 5 and 20 percent of a home’s purchase value as down payment, but the more money you can put down, the better off you’ll be. By responsibly managing your spending and allocating extra cash to a savings account, you will be on the right track towards saving for your home purchase.

We are providing prospective homebuyers with these tips to save for a down payment:

  • Develop a budget & timeline. Start by determining how much you’ll need for a down payment. Create a budget and calculate how much you can realistically save each month – that will help you gauge when you’ll be ready to transition from renter to homeowner.
  • Establish a separate savings account. Set up a separate savings account exclusively for your down payment and make your monthly contributions automatic. By keeping this money separate, you’ll be less likely to tap into it when you’re tight on cash.
  • Shop around to reduce major monthly expenses. It’s a good idea to check rates for your car insurance, renter’s insurance, health insurance, cable, Internet or cell phone plan. There may be deals or promotions available that allow you to save hundreds of dollars by adjusting your contracts.
  • Monitor your spending. With online banking, keeping an eye on your spending is easier than ever. Track where most of your discretionary income is going. Identify areas where you could cut back (e.g. nice meals out, vacations, etc.) and instead put that money into savings.
  • Look into state and local home-buying programs. Many states, counties and local governments operate programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants.
  • Celebrate savings milestones. Saving enough for a down payment can be daunting. To avoid getting discouraged, break it up into smaller goals and reward yourself when you reach each one. If you need to save $30,000 total, consider treating yourself to a nice meal every $5,000 saved. This will help you stay motivated throughout the process.

If you are interested in a first mortgage on a new home or refinancing an existing home please call the SYB&T Mortgage Department number listed below!

Louisville / Southern Indiana:
(502) 625-9388

Indianapolis
(317) 238-2888

Cincinnati
(513) 824-6190

Apply online for a Mortgage: https://mb.syb.com


 

Resource Information Provided by the American Bankers Association.

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5 Important Questions When Choosing Your First Home

Moving into your own place can be exciting and frightening at the same time. Stock Yards Bank & Trust suggests considering the following questions when choosing your own home.

1. How much money do you have saved up?

Start with an evaluation of your financial health. Figure out how much money you have for a down payment or deposit on a rental. Down payments are typically 5 to 20 percent of the price of the home. Security deposits on rentals are usually about one month of rent and more if you have a pet. But be sure to keep enough in savings for an emergency fund. It’s a good idea to have three to six months of living expenses to cover unexpected costs.

2. How much debt do you have?

Consider all of your current and expected financial obligations like your car payment and insurance, credit card debt and student loans. Make sure you will be able to make all the payments in addition to the cost of your new home. Aim to keep total rent or mortgage payments plus utilities to less than 25 to 30 percent of your gross monthly income. Recent regulatory changes limit debt to income (DTI) ratio on most loans to 43 percent.

 3. What is your credit score?

A high credit score indicates strong creditworthiness. Both renters and homebuyers can expect to have their credit history examined. A low credit score can keep you from qualifying for the rental you want or a low interest rate on your mortgage loan. If your credit score is low, you may want to delay moving into a new home and take steps to raise your score. For tips on improving your credit score, visit aba.com/consumers.

4. Have you factored in all the costs? Create a hypothetical budget for your new home.

Find the average cost of utilities in your area, factor in gas, electricity, water and cable. Find out if you will have to pay for parking or trash pickup. Consider the cost of yard maintenance and other basic maintenance costs like replacing the air filter every three months. If you are planning to buy a home, factor in real estate taxes, mortgage insurance and possibly a home owner association fee. Renters should consider the cost of rental insurance.

 5. How long will you stay?

Generally, the longer you plan to live someplace, the more it makes sense to buy. Over time, you can build equity in your home. On the other hand, renters have greater flexibility to move and fewer maintenance costs. Carefully consider your current life and work situation and think about how long you want to stay in your new home.

Stock Yards Bank & Trust offers a wide variety of mortgage services for new and repeat home buyers. Visit our website for more information or contact us at (502) 582-2571. 

 

Resource Information Provided by the American Bankers Association

First-Time Homebuyers: 6 Tips to Save for the House of Your Dreams

According to a 2015 BMO Harris report, 52 percent of Americans plan to buy a home in the next five years.  Saving for a down payment, typically between 5 to 20 percent of the home’s value, is one of the biggest challenges for those aspiring homebuyers. The American Bankers Association Foundation is highlighting six tips to help consumers cut costs and start saving.

“A down payment is often the largest single payment a consumer makes in their lifetime and saving for it isn’t easy,” said Corey Carlisle, executive director of the ABA Foundation. “However, with a few changes, consumers can put themselves on track to make their homeownership dream a reality.”

The ABA Foundation offers prospective homebuyers these saving strategies:

Develop a budget & timeline. Start by determining how much you’ll need for a down payment. Create a budget and calculate how much you can realistically save each month – that will help you gauge when you’ll be ready to transition from renter to homeowner.

Establish a separate savings account. Set up a separate savings account exclusively for your down payment and make your monthly contributions automatic. By keeping this money separate, you’ll be less likely to tap into it when you’re tight on cash. If you received a tax refund, consider putting all or a portion into this account.

Shop around to reduce major monthly expenses. It’s a good idea to check rates for your car insurance, renter’s insurance, health insurance, cable, internet or cell phone plan. There may be deals or promotions available that allow you to save hundreds of dollars by adjusting your contracts.

Monitor your spending. With online banking, keeping an eye on your spending is easier than ever. Track where most of your discretionary income is going. Identify areas where you could cut back (e.g. nice meals out, vacations, etc.) and instead put that money into savings.

Celebrate savings milestones. Saving enough for a down payment can be daunting. To avoid getting discouraged, break it up into smaller goals and reward yourself when you reach each one. If you need to save $30,000 total, consider treating yourself to a nice meal every $5,000 saved. This will help you stay motivated throughout the process.

Look into state and local home-buying programs. Many states, counties and local governments operate programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants. Stock Yard’s Mortgage Banking Group can help you determine what types of offers are available in your area.

Information provided by the American Bankers Association.

9 Tips to Green Your Home and Save Money

1. Location, location, location efficiency. Carefully consider the location of your home. If you’re close to work, shopping and entertainment, you may not need a car. Without a car you would save money on gas, car insurance and maintenance, not to mention reduce pollution. If you’re thinking about moving further out, try to find something near public transportation and shopping.

2. Light up the house, not the electric bill. Replacing incandescent light bulbs with more energy efficient compact florescent light (CFL) bulbs will save you about $6 a year in electricity costs per bulb and more than $40 over its lifetime. According to ENERGY STAR, if every American home replaced just one light bulb, we would save enough energy to prevent 9 billion pounds of greenhouse gas emissions per year. Remember to recycle used CFL bulbs. Go to http://www.epa.gov/bulbrecycling for recycling locations.

3. Some like it hot, hot, hot…or cold, cold, cold. Closely monitor your thermostat. Adjusting it just a few degrees while you’re out can save energy and money. You can make it easier by installing a programmable thermostat. Use fans and close the blinds during the warm months and let the sun in for natural warmth in the winter. Also, change your filter every three months.

4. Make it mean-green-clean. Cleaning supplies can be expensive and are made with toxic chemicals. You can save money and the environment by making your own cleaning supplies. All you need are some basic household ingredients like vinegar, lemon juice, baking soda and borax to clean everything from windows to tile.

5. Reduce, Reuse, Recycle! Sticking to this mantra can help you save money around the house. Use a rag instead of paper towels. Buy products in bulk, concentrate or refillable containers to reduce packaging waste. Look for products made from recycled content. And don’t forget to recycle!

6. Win-dos for your windows. There are a number of ways you can make your windows more energy efficient without replacing them. For better insulation from the weather you can caulk exterior joints, put shrink wrap on them or hang blackout curtains.

7. Fan the green flames. To keep your refrigerator running efficiently, keep the fan clean. The motor won’t have to work as hard if the fan is clear of debris.

8. Decorate green. Houseplants are like living air-filters. English Ivy, rubber trees, peace lilies and red-edged dracaena can help clean the air and look pretty too.

9. Vampire energy is sucking you dry. On or off, anything plugged into the wall sucks energy. Vampire power costs U.S. consumers more than $3 billion a year, according to the U.S. Energy Information Administration. Unplug your electronics and appliances when they’re not in use.

Resource information provided by American Banker’s Association. For more green home solutions, visit: epa.gov/greenhomes